Lifestyle Creep: Personal Finance Worksheets and Financial Literacy

Lifestyle Creep: Personal Financial Literacy Lesson about Spending Carefully

This engaging personal finance lesson highlights the key principle of successful financial planning - 'Always spend less than you earn!'. It demonstrates financial concepts through practical and relatable examples, including a comparison between a high-income earner and lower-income earner: you might be surprised who is doing better financially!

How to Use:

1. First, a handout introduces two characters- Raya, who earns $5000 monthly but saves $50 each month; contrasted with Lucien, an affluent lawyer who makes $20,000 monthly but overspends by $50 each month. These personas bring vital insights into the consequences of prudent versus extravagant financial habits over time.

2. Next. the concept of "Lifestyle Creep" is introduced. It is when your standard of living permanently increases when your income does: things that used to be luxuries become everyday expectations. For example, acquiring new ski gear prompts related expenses like annual ski passes or one-time investments like car ski rack installations.

3. Then, students brainstorm common items of Lifestyle Creep that Lucien may have incorporated into his daily expectations.

4. Finally, they practice noticing and calculating Lifestyle Creep with two real world examples: moving to a bigger apartment or adopting a pet.

5. A complete answer key is also included to eliminate any guesswork!

Grades to Use With:

This lesson is designed for high school students in grades 8-12 in Career and Personal Planning, finance, applied math, life skills, or high school special education classes. It could also be used for grade 7 enrichment.

What's Included:

This ready-to-go lesson is an easy to print PDF that includes a two-page handout, two pages of practice activities, and an answer key.

If you enjoy this financial literacy activity, check out others in my store:

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